Abu Dhabi’s property sector is a major contributor to the UAE’s economy. The capital city attracts a large pool of people from across the globe. Also, government initiatives allow more people to own new properties and enhance existing ones with loan facilities. The Demolition and Reconstruction Loan, for instance, is a formidable option for property owners in Abu Dhabi. The loan facility allows owners to revamp their property as a whole. Let’s dive into the details to learn all about the demolition and reconstruction loan by TAMM Abu Dhabi.
What is the Demolition and Reconstruction Loan Abu Dhabi
The Abu Dhabi Housing Authority (ADHD) offers different kinds of housing loans. For instance, home purchase and house maintenance loans among other types. Similarly, ADHA has a loan service for property demolition and construction.
Through this service, individuals can get an amount of AED 1,750,000. Applicants can use the amount to demolish their existing home and reconstruct a new one on the same land. Moreover, the authority offers an easy monthly instalment plan for loan repayment.
How to Request for Demolition and Reconstruction Loan
ADHA and other authorities have a streamlined system for all application processing. TAMM Abu Dhabi handles all applications. For instance, residential land grant by Iskan Abu Dhabi or the demolition and reconstruction loan among more.
Let’s see the process to apply for this loan service.
REQUIRED DOCUMENTS
Applicants must have a valid Emirates ID (original) to apply for this loan.
APPLICATION FEES
There is no application fee for this service.
STEPS TO APPLY
Fill out the application, attach the required documents and submit it on the available channels. Applicants then receive a notification via text message with the steps to follow. Do as asked to process the application.
WHERE TO APPLY
Applicants can go to the TAMM Abu Dhabi portal and search for this service. Go to the demolition and reconstruction page to start the process.
TERMS OF SERVICE
To apply for the demolition and reconstruction loan, there are certain terms and conditions to be wary of. The details are as follows:
GENERAL REQUIREMENTS
- The applicant has to be a citizen.
- The applicant must be fully competent.
- The individual has to be continuously residing in the state.
- The applicant or their spouse should not have availed any other house grant or loan from the local or federal government. However, there’s an exception if the wife obtained a loan before marriage or in the case of polygamy.
- The property to be demolished must be registered in the applicant’s name. The title deed shall have the applicant’s name. Moreover, the property should not have any legal impediments of construction and demolition.
- The applicant must be an individual unless there is a co-ownership scenario that is according to ADHA’s rules.
- The property is to be demolished as per ADHA’s technical report. Otherwise, it should be according to the report by an approved entity.
- The house must be at least 30 years old from the date of completion. However, the council or authorised personnel may give an exemption on the construction age if the technical report deems the house inhabitable.
- The applicant with limited income must sign an undertaking to pay the outstanding instalments when their financial solvency gets better as per the controls determined by ADHA.
- When requested, the applicant should provide evidence of his ability to pay the amount required for demolition and reconstruction besides the loan amount. ADHA does not assign or award the contract until this guarantee is provided.
- The applicant must undertake to mortgage the property as a first-degree insurance mortgage until loan repayment. Additionally, the mortgage should be registered as per the prescribed legal provisions before loan activation. All dispositions are to be recorded with the concerned authorities in Abu Dhabi.
In addition to the numerous UAE home loan options, the demolition and reconstruction loan is a viable option for individuals. Moreover, ADHA has special conditions as per the categories to provide ease of service. The details are as follows:
FOR MALES
- Should be 25 years old.
- He is not required to be married.
- Social and humanitarian cases are exempted.
FOR WIDOWS
- Should be the breadwinner or custodian of one or more children. Elderly widows unable to bear children as per the official report are exempted from this clause.
- A non-citizen widow must have resided in the state continuously for at least 5 years from the date of loan application.
FOR UNMARRIED FEMALE CITIZENS
- Should be at least 30 years old.
- She is not required to be married.
- Humanitarian and social cases are excluded.
- Should not have a breadwinner. Also, if the breadwinner is unable to provide housing for permanent reasons. Moreover, if the breadwinner cannot be forced by legal means to provide houses.
- If the applicant is a breadwinner for her second-degree relatives.
FOR DIVORCEES
- Should be at least 30 years of age.
- Marriage is not a requirement.
- Exclusion for social and humanitarian cases.
- The divorce contract must be irrevocable or should have happened 3 years ago.
- Should be a custodian or breadwinner of 1 or more children. Aged divorcees unable to have children as per the government report are exempted.
- A non-citizen divorcee must have continuously stayed in the state for at least 5 years prior to the date of the loan application.
FOR FEMALE CITIZENS MARRIED TO A NON-CITIZEN
- Be at least 30 years old.
- Marriage is not a requirement.
- Social and humanitarian cases are excluded.
- The woman should have one or more children living with her. There is an exemption for elderly widows who cannot bear children. This should be mentioned in the official government report.
- Must have continuously lived in the state for seven years with her husband and children from the time of application.
- The non-citizen spouse must give in a declaration and pledge not to claim or apply for any other residential loan if later he was to get citizenship.
- The father of the children cannot provide a house or is unable to do so as per the following conditions:
- The applicant must have limited income.
- The applicant is unable to earn due to a medical condition specified by an official government report.
- If the final court ruling deems him bankrupt or insolvent.
- If the husband lives in a different country or is away from the state. Moreover, if his address is unknown or if he refuses to provide a house or rent.
FAQs
Are There Home Loans for Expats in the UAE?
Yes, there are several home loans for UAE expats available in the country. Available with different perks, these allow foreigners to buy land in the UAE.
What is the Required Construction Age of the House for Demolition and Reconstruction Loan in Abu Dhabi?
The house must have a construction age of 30 years. However, the government provides relaxation on age if the technical report deems the house inhabitable.
Where to Submit the Demolition and Reconstruction Loan by TAMM Abu Dhabi Application?
Go to the TAMM Abu Dhabi official website and search for the demolition and reconstruction loan. Sign in to your account and initiate the loan process.
This is everything to know about the demolition and reconstruction loan in Abu Dhabi. The government initiative allows homeowners to reconstruct their homes. Moreover, easy instalment plans make the loan scheme more enticing.
Check out ADHA loan services to learn about the different kinds of lending options by the leading authority. Furthermore, discover the things to know before securing a mortgage in Abu Dhabi as it is a necessary step in the loan process too.
Besides reconstruction, you always have the option to choose a different house. Luckily, there are numerous options to choose from. Browse through these properties for sale in Abu Dhabi and end your search for the ideal home.
Stay connected with dubizzle’s property blog to learn about government home loan schemes and more.
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